Bradda Head Lithium (LON: BHL) (TSXV:BHLI) (OTCQB:BHLIF) shares are down 17% in London this morning. This is a technical move and one that offers an opportunity for a small speculation. The specific and underlying speculation is that Bradda Head is telling the truth here. If that is true - note the if - then it's possible that there's an interesting little position to be taken.
Think back to when we talked of Altyn Gold: “The problem at Altyngold is that they have to produce their accounts by today. Their auditor is stating that they'll not be able to finish them, sign them off, in time for that to be done. So, ALTN has - rightly - asked for the shares to be suspended. This will take effect Tuesday morning (Monday the London markets are closed). That means trade can only be done today. Hmm, so, how risky is this delay to the accounts? That's what the problem is here. So, the price drops 22% as a result of the imminent suspension. But we are told - told, of course - that the suspension is likely to be just for a week. The auditors also say they've no issues here, it's just they'll not be ready.”
As it turned out it really was just the auditors not getting their act together, the suspension lasted for a short period of time and the shares bounced back up when it was lifted. 20% or so in a couple of weeks: “Which is what we suggested would be an interesting speculation. As it turned out to be. The suspension was lifted, shortly, and the stock jumped 20% when it did so. That's that sharp U-shape in the Altyn Gold share price around 5 May and following.”
Bradda Head Lithium share price from London Stock Exchange
Bradda Head now has a similar problem: “The Company has today published the following announcement in Canada regarding the timing for release of its Financial Statements for the year ended 28 February 2023. This will not impact on the deadline for publishing the Financial Statements as required under AIM Rule 19. Vancouver, British Columbia - (June 28, 2023) - Bradda Head Lithium Limited (AIM:BHL, TSXV:BHLI, OTCQB:BHLIF) ("Bradda Head" or the "Company") announces the Company's potential delay in filing its annual financial statements for the year ended February 28, 2023 and related management discussion and analysis (collectively, the "Financial Statements") and the CEO and CFO certificates relating to the Financial Statements (the "Required Filings") beyond the prescribed filing deadlines.”
Bradda Head will be late filing its accounts. But it is, really, only that the auditors haven't had enough time. Also, it's only going to be late by TSX standards. This won't affect the London, or AIM quote. So, we really do seem to have something very like the Altyn Gold idea. The 17% fall will - we assume - reverse when those accounts are published.
Well, maybe - that's why it's called speculation of course.